CVB Financial Corporation · NASDAQ:CVBF
CVB Financial — Investor Presentation (February 2013)
47 slides from CVB Financial's investor presentation, Feb 7, 2013
Slide 1: CVB Financial Corp. February 2013
Exhibit 99.1 February 2013
Slide 2: Forward-looking statements
Certain matters set forth herein (including the exhibits hereto) constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including forward-looking statements relating to the Company's current business plans and expectations regarding future o
Slide 3: CVB Financial Corp. (CVBF) at a glance
Total Assets: $6.4 Billion Gross Loans: $3.5 Billion Total Deposits (Including Repos): $5.2 Billion Total Equity: $763 Million Source: Q4 2012 earnings release & company filings. *non-covered loans Largest financial institution headquartered in the Inland Empire region of Southern California. Founde
Slide 4: Experienced Leadership
Name Position Banking Experience CVBF Service Christopher D. Myers President & CEO 28 Years 6 Years Richard C. Thomas Executive Vice President Chief Financial Officer 3 Years 2 Years James F. Dowd Executive Vice President Chief Credit Officer 36 Years 5 Years David C. Harvey Executive Vice President
Slide 5: Board of Directors
Name CVBF Experience Age Ronald Kruse - Chairman 38 Years 73 Linn Wiley – Vice Chairman 21 Years 74 George Borba Jr. New 45 Steve Del Guercio New 51 Robert Jacoby 7 Years 71 Ray O’Brien New 55 San Vaccaro 13 Years 79 Chris Myers – CEO 6 Years 50 Board of Directors
Slide 6: Who is… CVB Financial Corp.?
Who is… CVB Financial Corp.?
Slide 7: Largest Banks Headquartered in California
Rank Name Asset Size (9/30/12) In millions Largest Banks Headquartered in California Wells Fargo $1,374,715 Union Bank $88,185 Bank of the West $63,037 First Republic Bank $32,576 City National Bank $26,252 OneWest Bank $25,827 East West Bank $21,813 SVB Financial $21,577 Cathay Bank $10,605 CVB Fin
Slide 8: Bank Accomplishments & Ratings
• 143 Consecutive Quarters of Profitability • 94 Consecutive Quarters of Cash Dividends • #6 Rated Bank: BankDirector Magazine Bank Performance Scorecard (July 2012) • BauerFinancial Report Five Star Rating (September 2012) • Fitch Rating BBB (October 2012) Bank Accomplishments & Ratings
Slide 9: CVB Financial Corp.
CVB Financial Corp.
Slide 10: Business Financial Centers, Commercial Banking Centers, CitizensTrust Locations
40 Business Financial Centers 5 Commercial Banking Centers 3 CitizensTrust Locations
Slide 11: Deposits by region
(000’s) # of Center Locations Total Deposits (12/31/11) Total Deposits (12/31/12) *Includes Customer Repurchase Agreements; Balance as of balance sheet date Deposits* Los Angeles County $1,872,623 $1,894,958 Inland Empire (Riverside & San Bernardino Counties) $1,592,445 $1,668,906 Central Valley $82
Slide 12: Non-Interest Bearing Deposits
(000’s) Non-Interest Bearing Deposits
Slide 13: Deposit Cost Comparison
Source: Q4 2012 earnings release & other company filings, SNL Financial—peers represent public CA , AZ, HI, NV, OR & WA banks with assets $2 - $25 billion. Peer data as of 9/30/12 Deposit Cost Comparison
Slide 14: Service Charge Income
12 Months 12/31/11 12 Months 12/31/12 % Change *Includes Customer Repurchase Agreements Service Charge Income* Service Charges on Deposit Accounts $15,767,976 $16,105,811 2.14% Service Charges/Total Deposits 0.31% 0.31%
Slide 15: Total Loans by region
(000’s) Non-Covered Loans* Covered Loans* Total Loans* % *Prior to MTM discount and loan loss reserve (Includes loans Held for Sale) Total Loans* as of 12/31/2012 Los Angeles County $1,190,214 $16,572 $1,206,786 34.68% Central Valley $662,420 $191,419 $853,839 24.54% Inland Empire (Riverside & San B
Slide 16: Loan balances over time
(00's) $3,800,000 $3,600,000 $3,400,000 $3,200,000 $3,000,000 $2,800,000 $2,600,000 $2,400,000 $2,200,000 $2,000,000 Q3 2009 a4 Qi 2010 Q2 Q3 a4 Qi 2011 Q2 Q3 a4 Qi 2012 Q2 Q3 Q4
Slide 17: Loan Portfolio Composition
Source: Q4 2012 earnings release & company reports | *Non-covered loans Consumer 1.5% SFR Mortgage 4.9% Municipal Lease Finance Receivables 3.2% Auto & Equipment 0.4% Dairy, Livestock & Agribusiness 10.3% Commercial & Industrial 16.8% Construction RE 1.8% Commercial RE Owner Occupied 21.6% Total Loa
Slide 18: Total Covered Loans
Includes Loans Held for Sale Total Covered Loans Includes Loans Held for Sale
Slide 19: Non-Performing Assets Non-Covered
Non-Performing Assets Non-Covered
Slide 20: Loan Loss Allowance/Charge-Offs
Loan Loss Allowance/ Charge-Offs --Non-Covered--
Slide 21: Classified Loans Non-Covered
(000’s) Classified Loans Non-Covered
Slide 22: Superior Credit Quality
CVBF’s strong loan underwriting culture has limited its exposure to problem credits Continued profitability has allowed CVB to build its capital base and reserves for loan losses. Texas Ratio NPA’s/Loans & OREO Source: Q4 2012 earnings release & other company filings, SNL Financial—peers represent p
Slide 23: CVB Financial Corp.
CVB Financial Corp.
Slide 24: Net Income After Taxes
(000’s) Net Income After Taxes $20.4 million FHLB prepayment charge Net Income Net Income After Taxes
Slide 25: Earnings
2008 2009 2010 2011 12 Months to 12/31/2012 (000’s) Earnings Net Interest Income $193,679 $222,264 $259,317 $234,681 $236,950 Provision for Credit Losses ($26,600) ($80,500) ($61,200) ($7,068) $0 Other Operating Income/Expenses (Net) ($81,331) ($52,515) ($111,378) ($106,809) ($122,257) Income Taxes
Slide 26: Net Interest Margin
*Normalized excludes accelerated accretion on covered loans Normalized* 1.50% 1.75% 2.00% 2.25% 2.50% 2.75% 3.00% 3.25% 3.50% 3.75% 4.00% 4.25% Q1 2007 Q2 Q3 Q4 Q1 2008 Q2 Q3 Q4 Q1 2009 Q2 Q3 Q4 Q1 2010 Q2 Q3 Q4 Q1 2011 Q2 Q3 Q4 Q1 2012 Q2 Q3 Q4 Net Interest Margin *Normalized excludes accelerated a
Slide 27: CVB Financial Corp.
CVB Financial Corp.
Slide 28: Expenses
*Includes $20.4 million FHLB prepayment charge Expenses (000’s) Salaries and Employee Benefits $62,985 $69,419 $69,993 $68,496 Promotion & Entertainment $6,528 $6,084 $4,977 $4,869 Supplies $2,989 $3,314 $2,558 $2,212 Software Licenses & Maintenance $2,320 $5,031 $3,669 $4,269 Professional Services
Slide 29: CVB Financial Corp.
CVB Financial Corp.
Slide 30: Debt Repayment Activity 2012
Type of Debt Payoff Date Amount Weighted Average Interest Rate (000’s) Debt Repayment Activity 2012 FHLB Borrowings 8/28/2012 $250,000 3.39% Subordinated Debentures FCB Statutory Trust II 1/07/2012 $6,805 3-Month LIBOR + 3.25% CVB Statutory Trust I 6/18/2012 $20,619 3-Month LIBOR + 2.85% CVB Statuto
Slide 31: Outstanding Debt 12/31/2012
(000’s) Type of Debt Maturity Balance at 12/31/2012 Interest Rate *Does not include $26 million in overnight borrowings from FHLB **This portion of CVB Statutory Trust II was repaid on January 7 th 2013 Outstanding Debt* 12/31/2012 (000’s) FHLB Borrowings 11/28/2016 $198,934 4.52% Subordinated Deben
Slide 32: CVB Financial Corp.
CVB Financial Corp.
Slide 33: Consolidated Capital Ratios
Regulatory Minimum Ratio Regulatory Well-Capitalized Ratio September 30, 2012* * CVB Financial Corp. - Consolidated Capital Ratios Tier 1 Risk-based Capital Ratio 4.0% 6.0% 17.96% Total Risk-based Capital Ratio 8.0% 10.0% 19.23% Tier 1 Leverage Ratio 4.0% 5.0% 11.19% Tangible Capital Ratio 4.0% 5.0%
Slide 34: Peer Capital Metrics
Tier 1 Capital Ratio Total Risk – Based Capital Ratio Tangible Common Equity/Tangible Assets 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 18.00% 2007 2008 2009 Q1 2010 Q2 Q3 Q4 Q1 2011 Q2 Q3 Q4 Q1 2012 Q2 Q3 4.00% 6.00% 8.00% 10.00% 12.00% 14.00% 16.00% 18.00% 20.00% 2007 2008 2009 Q1 2010 Q2
Slide 35: Securities & Investments
Securities & Investments
Slide 36: Securities Portfolio $2.45 Billion
Source: Q4 2012 earnings release. As of 12/31/2012 securities held-to-maturity were valued at approximately $2.1million | Yield on securities represents the fully taxable equivalent Securities portfolio totaled $2.45 billion at 12/31/2012. The portfolio represents 38.5% of the Bank’s total assets Vi
Slide 37: Securities Portfolio Mark-to-Market
(000’s) $74,571 MBS & CMO’s $31,395 Municipal Bonds $41,736 Other Securities $1,440 Securities Portfolio* $2.45 Billion Mark-to-Market (Pre-tax) *Securities Available For Sale
Slide 38: CVBF Assets
*Includes overnight funds held at the Federal Reserve, Interest earning - due from Correspondent Banks, other short-term money market accounts or certificates of deposit Loans Securities Fed Balance* Other Goodwill & Intangibles 12/31/12 $6.4 Billion 12/31/06 $6.1 Billion Securities Fed Balance* Goo
Slide 39: CVBF Liabilities
12/31/06 $5.7 Billion 12/31/12 $5.6 Billion TOTAL DEPOSITS* Jr. Subordinated Debentures Other Liabilities BORROWINGS Jr. Subordinated Debentures BORROWINGS TOTAL DEPOSITS* Other Liabilities *Includes Customer Repurchase Agreements CVBF Liabilities
Slide 40: Our Growth Strategy
Our Growth Strategy
Slide 41: Our Vision
Our Vision Citizens Business Bank will strive to become Citizens Business Bank will strive to become the dominant financial services company the dominant financial services company operating throughout the state of operating throughout the state of California, servicing the comprehensive California,
Slide 42: Target Customer
The best privately-held and/or family- owned businesses throughout California Annual revenues of $1-200 million Top 25% in their respective industry Full relationship banking Build 20-year relationships Target Customer The best privately-held and/or family- owned businesses throughout California Ann
Slide 43: Three Areas of Growth
Three Areas of Growth Acquisitions --Banks-- --Trust-- DeNovo Same Store Sales
Slide 44: Acquisition Strategy
• Target size: $200 million to $2 billion in assets • Financial & Strategic • In-market and/or adjacent geographic market (California only) • Target size: AUM of $200 million to $1 billion • In California • In- market & ‘new’ markets Acquisition Strategy • Target size: $200 million to $2 billion in
Slide 45: Our 'Critical Few'
• Loan Growth • Expand Credit Product Offerings & Capabilities • Build Core Deposits • Drive Service Charge & Fee Income Growth • Manage Operating Efficiency • Grow Through Acquisition Our ‘Critical Few’ • Loan Growth • Expand Credit Product Offerings & Capabilities • Build Core Deposits • Drive Ser
Slide 46: Our Strategic Focus
• Strong Capital position • Strong, disciplined credit underwriting/credit culture • Build low-cost, sustainable deposits • Multiple forms of growth (don’t depend on one) • Same Store Sales • DeNovo • Acquisitions • Cross-sell: capture the whole wallet • Drive expense efficiency • Long-term outlook
Slide 47: Copy of presentation at www.cbbank.com
Copy of presentation at www.cbbank.com
CVB Financial — Investor Presentation (February 2013) on 6ix